Publication Date: April 2003
Bulletin ID: DLB-03-17
Summary: Processing Information Related to the Loan Origination Center (LOC) Closing
Posted on 04-23-2003
April 2003
DLB-03-17
Subject: Processing Information Related to the Loan Origination Center (LOC) Closing
Dear Partner:
This bulletin reminds you that the Loan Origination Center (LOC) in Montgomery, Alabama, will close in the next few months. The Common Origination and Disbursement (COD) system will not accept information for award years prior to 2002-2003. In order to allow for closure of the former system, the LOC must process all outstanding information for award years prior to 2002-2003 by July 15, 2003.
Schools that have not completed processing on 2001-2002 loans must do so before July 15, 2003. If your school is in the Final Program Review Determination (FPRD) process for any year, you must complete your appeal and work with the LOC to resolve outstanding issues as soon as possible, but no later than July 15, 2003. To ensure timely resolution of outstanding issues, we encourage you to provide data via electronic batch processing.
To close out promptly after completing your processing cycle, take the following steps:
· Report disbursements and adjustments within 30 days of the date of the activity
· Return any funds in excess of immediate need
· Make final drawdown requests as soon as possible, and
· Submit late disbursement requests beyond 120 days for proper approval
We are reviewing schools with positive balances for all program years. If your school has a positive balance, you should receive an FPRD letter by May 1, 2003.
Note for Schools with Borrower-Based Loans
If your school has borrower-based loans, you can still process 2001-2002 loans. However, you must complete processing before the LOC closes. By following the steps above, you should be ready to close out within 30 days of your last reported loan period end date, or within 30 days of your last disbursement date. Additionally, this will allow for completion of loan processing and adjustments before the LOC closes.
Thank you for your attention to this matter and for your ongoing partnership in the Direct Loan program. We will provide additional guidance about the LOC closing and the period following closure in future bulletins.
Sincerely,
Jane Holman
Acting Director, Title IV Delivery
Schools Channel